Glynwed hit by broker’s error

A stockbroker’s mistake saw Glynwed shares plummet last week before the Stock Exchange stepped in to halt trading. The group’s share price briefly dived by more than 30% from 230.75p to 160.75p shortly after the market opened. The fall was caused by a stockbroker entering the wrong sale price for a small tranche of 5,000 […]

A stockbroker’s mistake saw Glynwed shares plummet last week before the Stock Exchange stepped in to halt trading.

The group’s share price briefly dived by more than 30% from 230.75p to 160.75p shortly after the market opened. The fall was caused by a stockbroker entering the wrong sale price for a small tranche of 5,000 shares.

A spokesman for the Stock Exchange declined to identify the broker but said it would expect a `full explanation’ for the error, which would have required the person involved to override several safety checks.

`There are a number of checks in place that should have prevented an incorrect price being entered, so they must have been overridden,’ the spokesman said. `This is a serious matter. We take a very dim view of it and will either be getting someone in to see them or asking them to come and explain themselves.

`A drop like this will have given the investors a fright and we’ll want to know how the mistake was made.’

When Glynwed’s shares started trading again they had a more typical day and by the end of trading closed down at 218p, a fall of 11p.

The Stock Exchange’s spokesman denied that the increased use of automated share trading systems made this sort of mistake more, rather than less likely.

`A trader in a hurry has overridden built-in checks and put a mistake straight through the system,’ he said. `There is no software that can prevent this sort of thing from happening.’